EU Secures €90bn Loan for Ukraine Amidst Complex Diplomatic Discussions

Fri Dec 19 2025 10:41:37 GMT+0200 (Eastern European Standard Time)

European Union leaders agree on a €90 billion loan for Ukraine, addressing its urgent military and economic needs without utilizing frozen Russian assets.

In a significant diplomatic move, the European Union has agreed to provide Ukraine with a €90 billion loan to support its military and economic needs over the next two years. This decision comes after intense discussions regarding the use of frozen Russian assets, which were ultimately not utilized due to concerns over liability sharing. Danish Prime Minister Mette Frederiksen, European Council President Antonio Costa, and other leaders have expressed their commitment to supporting Ukraine during this critical time, as it faces a financial crunch. Tensions remain high in the region, with ongoing diplomatic efforts related to the war in Ukraine.

European Union leaders have struck a deal to give Ukraine a €90bn (£79bn; $105bn) loan after failing to agree on using frozen Russian assets.

The agreement, which leaders said would meet Ukraine's military and economic needs for the next two years, came after more than a day of talks at a summit in Brussels.

We committed, we delivered, EU chief Antonio Costa wrote on X as he announced the deal to provide a loan backed by the bloc's common budget.

Ukrainian President Volodymyr Zelensky had urged leaders to use €200 billion of frozen Russian assets but Belgium, where the vast bulk of the cash is held, demanded guarantees on sharing liability that proved too much for other countries.

In another development, French President Emmanuel Macron said he believed it would be useful for Europe to re-engage with Russian President Vladimir Putin.

EU leaders avoided chaos and division with their decision to provide Ukraine with a loan through borrowing cash rather than using frozen Russian assets, Belgian Prime Minister Bart De Wever said early on Friday. We remained united, De Wever added.

Ukraine is months from running out of cash and Zelensky said without an injection by spring Ukraine would have to reduce production of drones.

The EU estimates Ukraine needs an extra €135 billion to stay afloat over the next two years, with the cash crunch set to start in April.

German Chancellor Friedrich Merz, who had pushed for the asset plan, said the final decision on the loan sends a clear signal to Putin.

The agreement offers Kyiv a desperately needed lifeline amid a flurry of diplomacy as US President Donald Trump pushes for a quick deal to end Russia's war.

Meanwhile, Zelensky announced Ukrainian and US delegations would hold new talks on Friday and Saturday in the United States.